The Indian Rice Exporters’ Federation (IREF) has called on the government to extend significant fiscal support to the rice export sector in the Union Budget 2026, citing rising costs and sustainability challenges. In a representation to Finance Minister Nirmala Sitharaman, the trade body sought interest subvention, freight subsidies and timely tax remissions to strengthen India’s competitiveness in global rice markets.

IREF President Prem Garg said India accounts for nearly 40 per cent of global rice trade and exported around 20.1 million tonnes of rice to more than 170 countries during the 2024–25 fiscal year. He described rice exports as a strategic economic asset that supports farmer incomes, rural employment and the country’s external sector, while also enhancing India’s diplomatic influence.

Among the key demands, the federation sought a 4 per cent interest subvention on export credit, particularly for MSME exporters, to ease working capital pressures. It also requested reimbursement of 3 per cent on road and rail freight costs for export-bound rice, stating that high logistics expenses and freight volatility reduce price competitiveness, especially for inland clusters.

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IREF further urged the government to promote sustainable rice production by linking tax and investment incentives to water-saving and low-emission practices. These include Alternate Wetting and Drying, Direct Seeded Rice, laser land levelling and energy-efficient milling. The federation also proposed incentives to shift cultivation towards premium basmati, GI-tagged, organic and specialty rice varieties to improve farmer returns and reduce pressure on MSP procurement.

Another major concern raised was the issue of retrospective duty demands arising from the earlier imposition of a 20 per cent export duty on certain rice varieties. IREF sought a one-time waiver, citing inconsistent interpretations of duty calculations that led to disputes despite exporters acting in good faith.

The federation also recommended strengthening export finance guarantees and quality compliance infrastructure, including testing and traceability systems. According to IREF, targeted fiscal measures in the upcoming Budget could enhance sustainability, stabilise the sector and ensure India retains its leadership in the global rice export market.

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